National Cooperative Policy, 2025

Syllabus: GS2/ Governance, GS3/ Economy

Context

• The Union Ministry of Cooperation unveiled the National Cooperation Policy – 2025, marking a transformative moment in the history of India’s cooperative movement.

About

• India’s first National Cooperation Policy was introduced in 2002.
• The second cooperation policy in 2025, represents a renewed commitment to making cooperatives competitive, inclusive, and future-ready.
• Pillars of the National Cooperation Policy, 2025:
  • Strengthening the Foundation
  • Promoting Vibrancy
  • Preparing Cooperatives for the Future
  • Enhancing Inclusivity and Expanding Reach
  • Expanding into New Sectors
  • Preparing the Younger Generation
• Objectives of the Policy:
  • Triple the cooperative sector’s contribution to GDP by 2034.
  • Increase cooperative societies by 30% from the current 8.3 lakh.
  • Bring 50 crore new or inactive citizens into active cooperative participation.
  • Establishment of at least one cooperative unit in every village & set up 5 Model Cooperative Villages in every tehsil, supported by NABARD.
  • Establish PACS or primary cooperative units in every panchayat.

What are Cooperatives?

• A cooperative (or co-op) is an organization or business that is owned and operated by a group of individuals who share a common interest, goal, or need. 
• These individuals, known as members, participate in the cooperative’s activities and decision-making process, typically on a one-member, one-vote basis, regardless of the amount of capital or resources each member contributes. 
• The main purpose of a cooperative is to meet the economic, social, or cultural needs of its members, rather than to maximize profits for external shareholders.

Cooperatives as India’s Economic Backbone

• Cooperatives empower small farmers, artisans, fishermen, women, and labourers by giving them collective bargaining power.
  • Example: Amul has uplifted millions of dairy farmers, many of whom are landless or marginal farmers.
• Strengthening Rural Economy: Over 65% of India’s population lives in rural areas. Cooperatives provide credit, inputs, marketing, and infrastructure support.
  • PACS (Primary Agricultural Credit Societies) are the first point of credit delivery in rural India.
• Promoting Self-Reliance: Cooperatives reduce dependence on middlemen and large corporations by pooling local resources for production, processing, and marketing.

Initiatives Taken by Government

• The government has laid the foundation stone for India’s first national-level cooperative university, ‘Tribhuvan Sahkari University’ (TSU), in Anand, Gujarat.
• The Model Cooperative Village (MCV) programme, has been implemented by the National Bank for Agriculture and Rural Development (NABARD) in selected villages of Gujarat.
• The Ministry of Cooperation in India was established in 2021, to provide a renewed focus on the Cooperative Sector.
• Empowerment of Scheduled Cooperative Banks, treating them on par with commercial banks.
• Launch of ‘Sahkar Taxi’ to ensure profit-sharing with drivers.
• Establishment of three national-level multi-state cooperative societies for, Export promotion, Seed production and Branding and marketing of organic products.
• Initiatives like White Revolution 2.0, with a focus on women’s participation.
• Expansion of PACS into Jan Aushadhi Kendras, fuel distribution, LPG delivery, and rural infrastructure services.

Concluding Remarks

• The National Cooperation Policy, 2025 is a visionary step to mainstream cooperatives as engines of inclusive and sustainable development. 
• As India approaches its centenary of independence in 2047, a reformed cooperative sector could be key to achieving the vision of Aatmanirbhar Bharat.

Source: PIB